Any argument over the efficacy of medicinal marijuana is settled science. Recent prestigious clinical studies have provided conclusive evidence that medical cannabinoids are effective medicine for a variety of diseases and ailments (http://dtn.fm/C9Sao). However, the human gastrointestinal tract just doesn’t absorb cannabinoids effectively, and much of what is ingested is simply excreted by the body. Subsequently, onset times and effectiveness vary wildly.

Lexaria Bioscience Corp. (CSE: LXX) (OTCQB: LXRP) has patented and licenses a novel delivery system which infuses organically sourced hemp oil into the molecules of other substances. The system utilizes lipids, which form the basis of the human endocannabinoid system, increasing both absorption and bioavailability of payload molecules. Lexaria’s lipophilic enhancement technology increases the bio-absorption of cannabinoid edibles by five to 10 times, to roughly equal that of inhalation. The onset times for effectiveness are also reduced by about 75 percent due to rapid bio-absorption by bypassing first-pass liver metabolism. Not only does Lexaria’s methodology dramatically increase effectiveness; it also masks the taste of cannabinoids and eliminates the need for sugar additives.

Lexaria currently has 19 patent applications filed in the U.S. and internationally covering 44 countries. The patents encompass a broad range of lipophilic bio-actives including NSAIDs and Nicotine, as well as food/carrier that can be formulated and delivered using Lexaria’s technology. With U.S. patents already issued, the company announced just last week that its first international patent was accepted and issued in Australia (http://dtn.fm/zjN9O). This development opens the door for Lexaria to bring the Australian cannabinoid edibles market under its umbrella.

Chris Bunka, CEO of Lexaria, stated in the news release. “We are very pleased to have received this patent which effectively covers all cannabis oil extract formulated edibles utilizing our technology in Australia…(the) patent award allows us to confidently enter the recently legalized Australian cannabis marketplace where we will seek additional licensing and product distribution partnering opportunities.”

Lexaria employs a low-cost, high-margin license and royalty model of revenue generation. By out-licensing to third party partners, the company keeps five to 10 percent of each partner’s gross sales. With multiple royalty agreements already in the works, the company will continue to expand its licensing network as it receives patent approvals. Interestingly, Lexaria’s novel technology has implications across a wide swath of consumer and pharmaceutical delivery protocols. The global impact of Lexaria’s patents and business model will easily reverberate to the bottom line and has only just begun.

QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. It is part of our mission statement to help the investment community discover emerging companies that offer excellent growth potential. We offer several ways for investors to learn more about investing in these companies as well as find and evaluate them.